Crown Estate Bill [Lords]

Luke Charters Excerpts

2nd reading
Tuesday 7th January 2025 Commons Chamber

[Mr Luke Charters (York Outer) (Lab)]

I am pleased to speak in today’s debate, because although the Bill is short, it is an incredibly important piece of legislation, not least because it ties together two things that we on the Government Benches care about: unlocking growth and driving clean energy. Perhaps Conservative Members do not care about those things, judging by the Conservative Benches today. The Bill gives us the chance to start delivering the growth that this country desperately needs, without requiring a new fiscal statement or drastic economic reforms. Most importantly, the Bill will benefit my constituents in York Outer and the country as a whole.

For too long, the Crown Estate’s ability to act as an engine for growth has been held back by outdated rules. Imagine a business sitting on vast potential—real estate, seabed rights and assets worth billions—but unable to reinvest or leverage those resources to their full extent: the Bill changes that. By freeing up the Crown Estate’s balance sheet and allowing it to operate more like a modern, agile business, it creates the conditions for growth, without requiring sweeping fiscal reforms or additional taxpayer contributions.

However, the Bill is not just about numbers on a balance sheet; it is also about impact. Through the Crown Estate’s role in renewable energy, the legislation will support the creation of new projects, secure our domestic energy production and unlock up to £60 billion in private sector investment. That is the kind of forward-thinking approach we need to create a secure and prosperous future.

[Chris Vince (Harlow) (Lab/Co-op)]

Does my hon. Friend agree that the Bill is another example of how this Labour Government are rolling up their sleeves, getting the job done, and creating growth and jobs for communities in York Outer and in Harlow?

[Mr Charters]

I always agree with my hon. Friend. He will recognise the impact the Bill brings not only to the Crown Estate but to GB Energy, which was one of the first initiatives implemented by the new Government. Taken together with the Great British Energy Bill, these are two pieces of thoughtful, complementary legislation that will support our green energy transition and economic growth—what a stark contrast to the previous Government, who not only ran out of ideas but failed to make the few ideas they had work in the first place.

The interaction between the Crown Estate Bill and the Great British Energy Bill is vital. In York Outer, we have a number of exciting projects that are ready to go and exemplify how these changes can drive forward our ambitions for a clean, secure energy future. For example, proposed battery storage facilities in York Outer could become critical national infrastructure for our local energy network, and Hessay solar farm was awarded funding from the contracts for difference scheme a few months ago. I welcome the exploration of wind projects, such as the Harewood Whin green energy park and the North Wigginton onshore wind project. Just today, we discovered that wind power was Britain’s largest source of electricity in 2024, topping gas-fired power plants for the first time in history. With the Crown Estate Bill, we can make even more projects like those in York Outer possible, unlocking clean energy for my region and beyond.

That takes me to the issue of energy security. Conservative Members, wherever they are, continue to oppose our publicly owned clean power company. Perhaps they have forgotten why it is so crucial to transfer power back into the hands of the British people. The myopic and naive approach of the last Government left our energy portfolio far too exposed. The Bill supports Britain’s flexibility and freedom to secure our own energy supply. It enables British households to be supported by British power—produced, owned and delivered by the British people. That is what Great British Energy is all about. We have all seen the cost of relying on foreign oil and gas. Families and businesses paid the price of our energy supply being dictated by foreign powers. Under this Government, that needs to stop—and it will stop. This Bill is a huge win for our energy independence.

But the benefits of this Bill go beyond energy. The Crown Estate is already a significant contributor to the public purse—last year it generated over £1 billion in net revenue profit, much of which was returned to the Treasury. By giving the Crown Estate the freedom to reinvest and modernise, we can grow that figure even further. That is not just a win for Government revenues; it is a win for taxpayers, as the money can be reinvested in public services and infrastructure in York Outer and across the UK.

I know that some Conservative Members, wherever they are, may worry about fiscal rules. I reassure them that although the Bill is radical in what it achieves, it does so in a sensible manner. By allowing the Crown Estate initially to use its cash reserves for investment, there is no immediate need to trigger new borrowing powers. This is therefore a measured approach that creates confidence for investors, while keeping fiscal discipline intact. It is not about ripping up the rulebook; it is about using the rulebook more effectively.

[Adam Jogee (Newcastle-under-Lyme) (Lab)]

My hon. Friend is making an excellent speech, which I am sure those on the Front Bench are enjoying. He mentioned sensibleness and moderation—both words I would use to describe my constituents. Will he join me in urging the Crown Estate, as it enjoys its new freedoms and powers in looking to invest for the future, to give a thought to the people, the place and the economy of Newcastle-under-Lyme?

[Mr Charters]

I was half-expecting my hon. Friend to mention Walleys quarry, although I cannot conceive of how he would link it to the Crown Estate Bill. He will agree that the additional revenue raised by the Bill will benefit his constituents as much as mine.

Over the past decade, the Crown Estate has returned £4.1 billion in net revenue profit to the Treasury. Just imagine how much more it could achieve with the freedom that this Bill provides—not just for the country, but for constituencies such as York Outer. This is what smart, forward-thinking legislation looks like: supporting businesses, securing energy and driving growth. I urge Members on both sides of the House, and particularly Conservative Members, wherever they are, to back this Bill and help us deliver a brighter, greener and more prosperous future.

[Madam Deputy Speaker (Caroline Nokes)]

I call the shadow Minister.